I

Integrated Pharmaceutical Services

3400 Data Drive, Rancho Cordova, Calif. 95670; 916-853-8758;

fax: 916-853-5225

1996 revenues

Total gross revenues$300,000,000

PBM gross revenues$275,000,000

PBM unbundled revenues$15,000,000

PBM Clients

Total125

Employer/group plans with direct service25

Lives Covered

Group Health:

Total12,000,000

Active enrollees10,000,000

through employers35%

through third-party vendors40%

through Medicare/Medicaid25%

Workers Compensation:

Active enrollees25,000

Retail Network

Pharmacy locations45,000

Generic usage

Percentage of prescription volume37%

Staff

Total125

Professionals35

Includes: 30 registered pharmacists

PBM services since: 1994.

Parent: Foundation Health Systems; primary business: HMO/PPO.

Services: Retail pharmacy network, mail-order distribution*, claims processing, online claims processing, concurrent utilization review, disease management, retrospective utilization review, benefit design consulting, formulary management/review, monitoring of physician prescribing practices, patient education.

Formularies offered: Open, closed, restricted/customized.

Pharmacies contracted: Independently owned; retail chains.

Reports provided: Physician prescribing patterns, generic vs. name brands dispensed analysis, employee utilization.

Service area: Nationwide.

Billing methods: Capitated rate, fee per claim. Volume discounts to employers.

Officers: Michael Cartier, president/CEO; Barry Katz, vp-managed care services; Kevin Nagle, vp-sales/marketing; Dr. James Bonnette, vp/medical director.

Contact: Kevin Nagle.

**Subcontracted.

INTEQ

5445 La Sierra Drive, Suite 400, Dallas, Texas 75231; 800-324-7799;

fax: 214-739-7979

1996 revenues

PBM gross revenues$5,000,000

PBM Clients

Total600

Employer/group plans with direct service150

Lives Covered

Group Health:

Total1,000,000

Active enrollees800,000*

through employers40%

through third-party vendors55%

through Medicare/Medicaid5%

Workers Compensation:

Active enrollees200,000

through employers100%

Retail Network

Pharmacy locations43,000

Mail-order services

Percentage of prescription volume12%

Generic usage

Percentage of prescription volume42%

Staff

Total40

Professionals35

Includes: 2 registered pharmacists

PBM services since: 1993.

Services: Retail pharmacy network, mail-order distribution, claims processing, online claims processing, concurrent utilization review, disease management, retrospective utilization review, benefit design consulting, formulary management/review**, monitoring of physician prescribing practices, patient education.

Formularies offered: Open, closed, restricted/customized.

Pharmacies contracted: Independently owned; retail chains.

Reports provided: Physician prescribing patterns, generic vs. name brands dispensed analysis, employee utilization.

Service area: Nationwide.

Billing methods: Capitated rate, fee per claim. Volume discounts to employers.

Officers: Andrew Fisk, president; Jerry Hosler, vp-administration/finance; John Teichgraeber, vp-sales/marketing; Patti Carr, vp-pharmacy operations.

Contact: John Teichgraeber.

**Estimate.

***Subcontracted.